Banking Code Consumer Group Slam

Banking Code changes have been slated by consumer groups, saying they do not go far enough.  The new banking code requires banks to contact customers in danger of defaulting on their mortgages and offer them contact details for free money advisers.  

Chairman of the Financial Services Consumer Panel, John Howard has commented saying “we’re not happy, the code is missing a provision that all banks should treat customers fairly”.  “A chance has been missed to end the practice of unsolicited credit limit increases” says Teresa Perchard, director of public policy at the Citizens Advice Bureau.  

Our view

Given that the rest of the financial services industry is required by the Financial Services Authority to have Treating Customers Fairly Procedures, it is tantamount to ‘sticking two fingers up’ that Banks, as ever, do what they want and have not include this in the Banking code.

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